Overview

Crypto-backed loan provider APX Lending has successfully secured a $20 million accordion facility from Cypress Hills, a private credit investment firm. This financing is aimed at advancing its services in Canada amid increasing demand for crypto-based loans.

What is an Accordion Facility?

An accordion facility permits a borrower to augment their borrowing without needing to renegotiate the entire agreement, expanding much like an accordion.

The State of Digital Asset Lending

Digital asset lending experienced turmoil when many lenders collapsed during the crypto winter in 2022. However, recent regulatory adjustments in the U.S. might usher in a revitalization of this sector.

Future Plans

Toronto-based APX intends to utilize the new funding to enhance its operational capabilities and meet the growing demand in Canada for crypto-backed loan offerings.

Andrei Poliakov, the Founder and CEO, commented, “This accordion facility from Cypress Hills marks a major step forward in our mission to make crypto-backed loans transparent, secure, and accessible to Canadians.”

Furthermore, APX received exemptive relief from the Canadian Securities Administrators (CSA) at the start of this month. This relief exempts them from certain registration requirements, addressing investor concerns effectively.

Mauricio Di Bartolomeo, Co-founder of Ledn, expressed optimism that the more favorable regulatory environment in Washington will contribute to a competitive market benefiting crypto lending, stating, “Gold in a vault in Switzerland is not gold in a vault in Venezuela, but bitcoin in Colombia is bitcoin in Madrid is bitcoin anywhere in the world.”

Andrei Poliakov will be a speaker at CoinDesk’s Consensus 2025 event in Toronto on May 14-15.